SEC Hedge Fund Advertising

SEC Hedge Fund Advertising

Mary Schapiro, head of the SEC, is reviewing new rules that would allow hedge funds and private equity funds to advertise more openly. This will come later than the previous deadline of July 4 that was set by Congress, according to Shapiro's testimony.

Earlier Thursday, Ms. Schapiro said she expects the SEC to issue rules this summer to allow hedge funds and other private funds to advertise broadly.

Ms. Schapiro, in prepared testimony before a panel of the U.S. House oversight committee, said that the SEC would not meet a July 4 deadline set by Congress to complete the rules lifting the longstanding ban on publicizing private securities offerings.

She said the SEC's work on this issue is more complicated than it would seem because Congress directed the SEC to require issuers of private offerings to take reasonable steps to verify that purchases are accredited investors.

Ms. Schapiro said the SEC had to look at the costs and benefits of doing this different ways. "It's a bit more challenging a rule making than it might seem on the surface," she said. Source

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